Ladies and gentlemen, thank you for standing by, and I would like to welcome you to MHP's Q1 2024 Results Conference Call. At this time, all participant lines are on listen-only mode. The format of the call today will be a presentation by the management team, followed by a question and answer session. So without further ado, I would now like to pass the line to Anastasiya Sobotyuk. Please go ahead, ma'am. Your line is open. Thank you, Michael. Dear stakeholders, good afternoon. Thank you for joining us today at MHP's conference call, dedicated to the first quarter results. I'm Anastasiya, Director of Investor Relations and ESG Compliance. Together with Viktoria Kapelyushnaya, CFO of MHP, we will discuss MHP's financial and operational results for the period. Today's call is based on a press release and financial statements released earlier today. However, during our call, we will discuss our projections and plans based on our assumptions, domestic and international trends. Please take it into consideration. We now move to slide number three of the presentation. A few words about macro environment. Taking into account that many businesses have been adjusting to a new operational environment, war environment, which remains unpredictably volatile in 2024. In Q1 2024, GDP grew by over 3%, with the forecasted growth in 2023 at the same level, 3%. CPI slowed down to 1%, compared to 3% in Q1 2023. 2024 harvest in Ukraine is expected to be strong, pretty much at the same strong level as it was in 2023, which is around 74 million tons. Let me now proceed with the company's results for the first quarter of the year. Let's go together to the Slide number five of the presentation. First of all, the war continues, and the first quarter of this year, performance reflects the resilience and agility of our business model and the tremendous effort of our workforce. Irregular and frequent drone and rocket attacks against civilian energy and other infrastructure targets continue. MHP would like to inform its stakeholders that due to shelling by the occupying forces on May seventeenth in Odesa region, a warehouse partly leased by the company to store frozen MHP's chicken meat products, was completely destroyed, resulting in the loss of poultry products worth over $8 million. MHP's employees, fortunately, were not injured. Moreover, the company provided comprehensive medical and psychological assistance to its employees. At the date of the publication, all our production facilities in Ukraine continue to operate at close to full capacity. When you look at our financial results for the first quarter, you can see the group's revenue decreased by 4% and reached approximately $720 million, with export revenue representing 63% of total revenue. Adjusted EBITDA remains stable and constituted $119 million, with EBITDA margin of 17%. War-related expenses increased by 67% year-on-year and constituted around $10 million. Let's move to slide 6, where you can see the financial results by segment. Main contribution to MHP's financial results in the first quarter of 2024 were poultry and related operations. The group generated the majority of total revenue, about 55%, as you can see, and 72% of the company's EBITDA, and the European operating segment, generating 19% of total revenue and contributing 15% to the company's EBITDA. Let us have a closer look at each business segment, and I would like to pass my word to Viktoria here. Thank you, Anastasiya. Good afternoon, everyone. Let's have a precise look at poultry and the related operations segment performance. Slide seven. Despite a number of difficulties due to the war in Ukraine, MHP delivered a good result in Q1, thanks to the combination of market environment and enormous amount of work undertaken by MHP team. Poultry price in Q1, both on export and domestic market, remained almost at the same level as Q4 2023. We don't expect further growth in poultry prices in this year. Commodity price risk is a common risk for MHP. In order to mitigate this risk, MHP continued to implement a culinary strategy and focus more and more on production and sales of non-commodity product, which are ready to eat and ready to cook. At the same time, it requires substantial effort from our team, investment in CapEx, as well as expenses to launch new product and increase our share on the local market. This trend will continue in the nearest future. In Q1, we continue to concentrate on selling processed meat with a focus on the most marginal product. Our strong result of Q1, mainly driven by higher sales volume of poultry meat on export market and by positive effect of revaluation biological assets and agricultural produce according to IFRS 41 standard. A few words about new segment, vegetable oil, slide number 8. In vegetable oil operation in Q1, we had low EBITDA compared to the same period last year. This increase in the volume of vegetable oil sold sector did not manage to sufficiently mitigate a decline in vegetable oil prices. In Q4 2023 and Q1 this year, sunflower oil prices trend was negative, which led to decrease of our oil crushing margin. We assume that the margin of this segment this year will remain in the level in Q1. Let's move to the Slide nine, Agricultural Operations. Segment revenue in Q1 amount $69 million compared to the $77 million last year. The decrease was mainly attributable to low volumes of corn sales on domestic market. EBITDA of agriculture operation segment, net of IFRS 16, was $17 million compared to the $3 million last year. This result was mainly due to significant negative revaluation of winter crops in fields in Q1 2023, adversely affected both IFRS 41 and EBITDA. In Q1 2024, total stabilization of price had no significant positive impact of total our EBITDA. Let's proceed to the Slide 10. Several words about European operation, operating segment. EBITDA of operating segment in Q1 amount $18 million and remained almost stable compared to the last year. The increase in revenue was offset by decrease in IFRS 41. Slide 11, few words about our cash flow and liquidity position. Cash flow from operation before change in working capital this year slightly decreased to $90 million, compared $98 million last year. Release of working capital amount to $12 million dollar, mostly due to the higher trade accounts payable and other liabilities, as a result of procurement of material for spring sowing campaigns such as energy, fertilizer, plant protection material, animal feed components, and other. Total CapEx in Q1 amount almost $60 million, and mainly related to maintenance and modernization project, construction of bioenergy production facility, investment in cost optimization and culinary strategy project, and expansion and improvement of Periatnina Ptuj production facility. Regarding debt, at the end of the period, company total debt was $1.5 billion, and net debt about $1.1 billion. At the beginning of 2024, MHP completed its second tender for repurchase of bond 2024, in amount $138 million. The last tranche from IFIs in total amount of $180 million were received in May this year. On tenth of May, MHP Eurobond 2024 was fully repaid. The company completely fulfilled its obligation regarding MHP Eurobond 2024. The liquidity position at the end of the first quarter was $390 million in cash, $280 million of which was held by group subsidiaries outside Ukraine. As today, we have around $300 million in cash, including only $130 million outside of Ukraine. Given current operational environment and significant uncertainty, we estimate our minimum safe cash balance at $200 million. And now, I give the floor to Anastasiya for update and outlook. Thank you, Victoria. MHP is expected to operate at close to full capacity in Ukraine, subject to any possible direct or collateral disruption damage to MHP's operations or lease storage. This is our plan, I would say. Perutnina Ptuj continues to develop according to its strategy. MHP has almost adapted to the war environment. At the same time, is experiencing many logistic challenges, especially with exports to the EU. This is what you can see from the news. And we remain conservative to any positive trends for price trends for grains, poultry, meat, and vegetables as of today. In general, there is a high level of uncertainty, as Victoria mentioned, regarding how operations in next quarters will look like and what kind of financial results this uncertainty will bring to the company. But MHP team is undertaking all necessary steps to the extent possible, of course, to continue its operations at efficient levels, to manage all difficulties associated with war, and overcome war-related obstacles. We are now ready to start our Q&A session. Thank you very much. Michael, we need your help. Thank you very much for the presentation. We'll now be moving to the Q&A part of the call. If you are dialed in via the telephone, please press star two, that's star two on your keypad to ask a voice question. If you are dialed in via the web, you may also ask a voice or a text question. Okay, we'll give a moment or so for questions to come. Thank you. Our first question comes from Mr. Anton Anikst from Knighthead Capital. Please go ahead, sir. Good afternoon, guys. Thanks for hosting the call. A couple kind of obvious questions. In years past, you've endeavored to give us a little bit of a high level guidance for the year, not just in terms of utilization capacity, new capacity utilization, but also high level EBITDA CapEx, ideally broken out between Ukraine, Perutnina. If you're in a position to share your outlook today, that would be extremely helpful. I know that the situation is extremely fluid still. And then, number two, maybe either Anastasiya or Vika, if you could, tell us a little bit about the change in cash since the end of March. I would have thought the redemption of the last of the bonds in early May should have been a liquidity neutral event since you drew down on the IFI facilities to clean up the bonds. So maybe the $90 million drop in cash from end of March to early June, if you could bridge that for us, that would be very helpful. Thank you so much. Thank you for your question. Regarding the first question about our guidelines for full year, yeah, no, yes, our total EBITDA, how we see from today, yeah, you understand it's very difficult to predict, but as here today, we understand that our EBITDA for full year, it would be around $400 million. Yeah, 25%, approximately, it is contribution from Perutnina. And total CapEx, approximately $300, $300+, and around one third from Perutnina, it is a CapEx of Perutnina. Yes, our liquidity position decreased since April, because we repaid Eurobond. Yeah, and, yeah, you know that we direct from IFI only $400 million, and total our Eurobond, it was -- we repaid more than $470 million. Yeah. And coupon, and coupon we paid in April and at the beginning of May, coupon for other Eurobond. Thank you. That's helpful. Thanks, Vika. Okay, thank you very much. Next question comes from Ms. Stella Cridge, from Barclays. Please go ahead, ma'am. Your line is open. Hi there. Afternoon, everybody, and many thanks for all of the updates. I wondered if I could ask about some of these changes that were introduced by the National Bank of Ukraine at the beginning of May, regarding access to FX for different purposes. I was wondering if you expected those changes to have any kind of positive effect for MHP, or just how you view the potential impact of those changes? That would be great. Thank you so much for your question. Unfortunately, these changes which issued the National Bank at the beginning of May, yeah, did not bring to us any benefits. Because, yeah, based on even yes these changes we, yeah, from Ukraine we cannot repay no coupon, no, we can from from Ukraine, yeah, from Ukraine no coupon, no loans. Just it is regarding only improved situation regarding dividends. Yeah, but only dividends and limitation which we can repay from these dividends, it would be $1 million a month. Yeah, that is... Yeah. Nothing so huge changes. Nothing giving real changes for MHP. Thank you. Has there been, are you aware of any sort of subsequent discussions that have happened since these changes were announced with big companies like yourself with regards to, you know, future, future payments that you need to make? No. Okay, we understand that current situation is difficult, and we understand that we have the strict obligation. No, we will discuss, but to be honest, and in the past, we discussed. No, okay, we will see. Okay. Many thanks for the comments. That's great. Thank you very much. A reminder, star two for any additional questions. Our next question comes from Ms. Vidhi Vira from Goldman Sachs Asset Management. Please go ahead, ma'am. Hi, congrats on the results. I just had, like, two questions. One was on the volume trends. So this quarter we saw a decline in volume, meaningful decline in volume, in both domestic as well as export markets. So just trying to understand what's driving this. Is it operational constraints or are you finding that the prices are not attractive? If you could give a color on how that has progressed. And second one is on the $130 million cash, which is outside of Ukraine. How much of that is at the European facility? And from what I remember, that cannot be used, right, to service the coupons? Thank you. Yeah, thank you for your question. Regarding situation on domestic market, yeah, we decreased our sales volume on domestic market in Q1, yeah, compared to the last year, and price in domestic market slightly decreased, too. Yeah, based on current situation, we understand that maybe on domestic market for full year, we sell maybe in slightly low compared to the last year. Regarding export, it is, yeah, in first quarter, we increased our volume for export compared to the first quarter, 2023. Compared to the first quarter, 2023, this we sold less because, at the beginning of 2023, we had high stock. Yeah, high stock. And this year, the beginning of this year, we did not have so high stock. It is, yeah, reason why so different in sales volume, you can see. Regarding cash, yeah, today we have $130 million cash outside of Ukraine, and around $80 million, it is in Perutnina. It is, yeah, Balkan. Our Balkan is... Wonderful. Thank you. Just one more from my side, if I may. On the EBRD maturity profile, when does that start? I believe that there was an amortization plan, right? Yes. Yes, our not just EBRD, all, all our IFIs loans, yeah, for maturity five years with amortization semi-annual. Yes. All right. Thank you. You're welcome. Thank you very much. Our next question comes from Erika Ivey from MetLife. Please go ahead, ma'am. Your line is open. Good afternoon. Thank you for taking my question. I was just wondering, have you started to think about the refinancing of the 2026 bond? And given that you amortize and will amortize the IFI facilities, that would create some headroom. So, possibly, would you use the IFI facilities to refinance also the 2026 bond? Thank you for your question. We understand that we have obligation for Eurobond 2026, but only, yeah, 20 years, 20 days ago, we repaid our previous Eurobond, yeah. And to be honest, I think for us it would be very difficult to attract additionally, yeah, $500 million or $400 million from IFI. Yeah, no, we understand the obligation. We think it, but unfortunately, right now, I cannot say anything. Sorry, if I push a little bit more, could you possibly as well run a tender offer, basically a similar process to what you've done for the 2024 bond? Yeah. So it seems to me everything possible. Yeah, it seems to me in current situation, everything possible, yeah. I cannot say exactly what we will do. I know that just, yes, we had a lot of Eurobonds in the past, and we always fulfilled all our obligation and promises, but, yeah, how we will, yeah, how we will do it, yeah, we need more time. Yeah, now to all I just said. Thank you. Understood. Thank you. Okay, thank you very much. We'll give another 30 seconds for any additional questions. Okay, we have a question from Mr. Dmitry Ivanov from Jefferies. Please go ahead. Hello, can you hear me? Please go ahead. Yes, yes. Yeah, thank you very much, Anastasia, Victoria, for the presentation. I have three quick questions, if I may. The first one, if it's possible, just to give us more color on the available facilities that are available for MHP to draw down. So of course, it includes $80 million CapEx facility from the DFIs. But could you kind of give us a number what is available in terms of the financing, your working capital needs, and et cetera, as of the latest available date, if possible? So it's, like, my first question. Regarding our undrawn facilities, yeah, we have $200 million and include $80 million for financing CapEx of IFI. Yeah, you're completely right. Yeah. Could you repeat the number? The total number available. The total number around 200. 200. And what's- Yeah. Is it, like, available, like, for one year, like, for two years? Like, what's, like, availability period for this? Oh, yeah, it's with... Yeah, approximately, yeah, it's a different period, but approximately one year. One year. Availability. I understand. Second question would be on CapEx. Again, like, you already provided, like, numbers on the CapEx guidance, $300 million+. I think you also specified on the last call that it includes your M&A, potential M&A. I would kind of just try to understand this number, like, $300 million+ is quite material and significant number for the company if we look at the historical CapEx outflows. So is it fair to assume that this CapEx will go down, for example, next year when these projects that you mentioned are completed? So basically, like, what kind of more sustainable level of CapEx for the business once the company completes this, like, projects? Yeah. First of all, you need to understand that our maintenance CapEx for whole our facilities in Ukraine and abroad, 100+ is a maintenance. Regarding all our businesses, poultry, vertical integration, yeah, you know that we have integration business model, and is our... Yeah. Yes, you're completely right. Yeah, previously in 2022 and even 2021, because twenty twenty it was very bad year for MHP. We, a little bit, how to say, tried to spend less, yeah, for maintenance, and we have realized it's not possible, because you understand we are continuing to work at 100% capacity utilization. Yeah, and that is why we need to have-- we need to spend money, yeah, and we need to have, we need to have the, how to say, a right shape of our fixed assets. Yeah, and that is why our minimum, yes, our level 100 million. And at the same time, we have the, our strategy to culinary and company produce more non-commodity products. That is why we buy additional equipment. Yeah, we launch additional equipment, yes, because only we increase sales, and not just right now and in the future, non-commodity products. That is why we need to buy additional equipment for this. And yes, M&A, but we did, but very not so big amount, yeah, for M&A, including this CapEx, only one company in Ukraine market. Yeah, it's very insignificant amount. And we have the CapEx to increase our capacity on in Perutnina, yeah. Understood. But looking at all in CapEx, including this projects, should we expect some reduction in CapEx spend next year? Like, should number be below $300, all in? No, I think that it de-develop our strategy, but when I look right now, our CapEx approximately around $250. It is real, yeah, because we have appetite to increase our volume in Ukraine, in the European market, and we would like to provide, to sell more and more non-commodity product. Understood. Thank you very much. And final question, apologies, you also mentioned it already, but, regarding this new National Bank of Ukraine rules, right? So basically, you mentioned that the new rules do not bring any benefits to the business, right? So basically, just correct my understanding, but if we read, like, official press release, I think, like, the National Bank of Ukraine allowed Ukrainian corporates to service interest on the old external debt. So basically, they're allowed to use onshore liquidity to service. But you mentioned that it didn't bring any benefits to the business. Just wanted to clarify this, if this restriction, sorry, if this or new rules by the NBU allowed the company to service coupon and interest on the offshore debt. Mm-hmm. Thank you for your question. Yeah. What is the difference and what is the new role? If company attract new loan after twenty-fourth of February, yeah, the new loans, in this case, is it possible, yeah, to provide servicing? Yeah, we had the debt on twenty-fourth of February. It is not just for MHP, the sum, it is the same situation, all Ukrainian company which have a Eurobond, and nothing changes and we... Yeah, we cannot repay coupon from Ukraine for debt which we had, on twenty-fourth of February. It is, yeah, it is, yeah, it's possible to service in new debt. ... Okay. Is clear? Okay. Okay, thank you very much. Okay, thank you. That's all for me. Thank you. Thank you very much. Next question comes from Mr. Konstantin Chinarov from Aptior Capital. Please go ahead. Hi, guys. Thanks for taking my questions. Firstly, could you please remind us how much debt you have in Perutnina facility right now, and what is the maturity of that debt? Yeah, Perutnina around $130, $130 million. So $100 million- Yeah. -of debt, and then $80 million of cash on the balance sheet there? Yeah. And what's the maturity of that debt? And is it a bank debt or some kind of other facility? Yeah, it's a bank. Yeah, it's a bank. Yeah, it's a bank debt for 3 years, approximately. For three years from now? Okay. Summary presentation, yeah. Got it. And then, excuse me, maybe I missed the point, but, could you please again clarify, you know, CapEx guidance of $300 million-$350 million looks very high compared to historicals. And, you know, obviously, you mentioned that maintenance CapEx is $100 million. So on top of $100 million, $200 million-$250 million, that's expansion CapEx? And if you could clarify, you know, what you're planning to build and any color on that would be helpful. Mm-hmm. Yes, it is time for expansion. Yeah, we increased our sales volume and production volume in Perutnina, and some increase in the CapEx for increased production volume on non-commodity product. Mm-hmm. We have the same CapEx, especially. It's very actual right now for some alternative energy. Got it. Got it. And so when, when I think about sort of your guidance of $100 million EBITDA, $300 million-$350 million CapEx, you know, historically, cash tax was, let's say, $10 million, and leases were $15 million. So that leaves relatively limited, you know, cash flow to service and debt, you know, cash interest is likely to be $150 million. So how, how to think, you know, about, about that in terms of, in terms of liquidity of the business? Maybe, you know, you expect release of working capital, or if you could sort of explain your thinking about liquidity of the company for the rest of the year. And, and, and any color- Yeah. on the working capital would be helpful. Yeah, yes. Regarding working capital, we don't expect any huge investment in working capital in 2024. Just one uncertainty issue about VAT reimbursement. No, at maximum it would be maybe $20 million investment, working capital potential, maybe zero. And based on current, our forecast for $100, $300, $120, $130, all our debt services. Now, we expect that by the end of the year, we will have maybe slightly higher our leverage, but we understand that we will keep in cash approximately $200 million. Because we cannot have less, in current situation, we cannot have less than the $200 million in account. Got it. Got it. So $200 million, and, that's the minimum level to run the business from your perspective? Yeah. Yes. Got it. Yeah. All right. All the best. Thank you. Thank you very much. We have a follow-up question from Stella Cridge, from Barclays. Please go ahead, ma'am, your line is open. Hi, there. Many thanks for taking the follow-up. Yeah, if you don't mind, I also just want to ask on the amortization payments of the IFIs and just what your base case is. You know, is it that you would plan to pay those out of the Ukrainian cash balances because you have the carve-out, or is there any option with the IFIs to, say, roll over the final maturity or extend that a little bit? Just want to get a sense of what the base case on your side was. Yeah. Yes, we can pay from Ukrainian cash position. Yes, you're completely right. For IFI, we can pay, yeah, from Ukrainian cash and from Ukraine, yeah. Okay. That's great. Thanks for that. Okay, it looks like we have no further questions. I'll pass the line back to the management team of MHP for the concluding remarks. Thank you very much. Thank you very much, everybody. That was a very good discussion. At the same time, as you know, if you have any further questions, you can reach the company easily. So, have a nice day, then. Bye. Thank you very much. This concludes today's conference call. We'll now be closing all the lines. Thank you, and goodbye.